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Airbus returns jet deposit to Air Serbia

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Air Serbia has said the European plane manufacturer Airbus has returned a 23.5 million dollar deposit made by its predecessor JAT Yugoslav Airlines for eight A319 aircraft in 1998. The deposit was credited by Etihad Airways as a pre-delivery payment for ten A320neo jets, which the Emirati carrier had ordered for its equity partner Air Serbia in 2013, but has since been cancelled. The Serbian airline said it secured the deposit "only thanks to Etihad". However, it remains unclear whether the payment has been forwarded directly to Air Serbia or if the deposit has simply been transferred back from Etihad to the Serbian airline, but ultimately remains locked-in with Airbus.

Asked by EX-YU Aviation News to clarify the statement, the European plane manufacturer said it was not at liberty to disclose any details as the matter is of a contractual nature which is confidential. Air Serbia held direct talks with Airbus in November of last year concerning the deposit. The airline's predecessor, Jat Airways, as well as multiple Serbian governments, unsuccessfully attempted to return the deposit payment for over a decade. The matter was quickly resolved after Etihad acquired a 49% stake in Air Serbia five years ago. Relations between the European plane manufacturer and the Serbian government have improved over the last few years, with Serbia also ordering Airbus military helicopters.

JAT Yugoslav Airlines was instructed to order eight A319 jets twenty years ago under extremely unfavourable terms. The order, valued at 560 million dollars, was viewed as a political stunt at the time as Yugoslavia was negotiating the lifting of trade embargoes imposed by the European Union onto the country. The sanctions were not lifted until 2001. Under the original order, delivers were due to begin in 2000 with two jets, while the rest were to be in service by 2005. At the time, JAT had no Airbus aircraft in its fleet, which was predominately made up of American airframes. The Yugoslav carrier also signed a preliminary agreement for CFM International CFM56-5A4 turbofan engines.

Lufthansa planes were couple of years younger with much more modern equipment that wasn't available when JU received their B737s from thr factory. Nobody else in Europe is operating such old 737s, not even for cargo.

These planes were grounded during the embargo, which means you can technically take a good 5 years off their current age. They are very well maintained, so not all that gloom and doom as per the well-rehearsed comments that we see here.

Sooner or later Serbian government will realize that there is no need for an own Serbian national carrier and to waste taxpayers money which should be used for other infrastructure projects and are more desperateWizz Air or Easy could base crew and aircrafts, maybe TK or A3 could base 1-2 aircrafts too and done deal. I would negotiate take over of as much as possible JU staff for those basing ac in BEG or adding new flights to BEG

1. National carrier is an infrastructure project. 2. Taxpayers don't decide where the money collected from taxes will go. They get periodic chances to sack the government if they think it does a lousy job with tax money management. If the government wants to open a $10 bn Disney World in Donje Brijanje - and they win the election - then they can go and open the damn thing. That is how democracy works. Taxpayers who don't like the way their tax money is spent can vote against the government. If the government wins, they accept it because that is how democracy works. Or they can stop paying their taxes. One thing that for sure makes no sense is to write another sad novel of a poor taxpayer every goddamn day on a goddamn AVIATION BLOG.

JU can not compete in the long term, you will burn more and more of your taxes just to hve the luxury of a national carrier. Makes no sense. Cut it and progress. Look at the North American market. it has double income against Europe (almost 17 bln in 2018) but Europe has 150 mio more population. And why this: because of their consolidated market. The cancellation of the NEOs was for me a clear sign. Time to break off tents

Why doesn't JU invert this money into Aviolet and focus exclusively on charters and the charter brand? You can make much more money in winter flying to already popular destinations.SSH, VDA, AJQ, RAK, MIR, etc.The logo can be revised and still include the sun and water logo.

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